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Exercise $6-21($Algo$)$ Complete the accounting cycle using inventory transactions $($LO$6-2,6-3,6-5,6-6,67)$

On January $1,2024,$ the general ledger of Big Blast Fireworks includes the following account balances:

The $\backslash (\backslash$$ $48,000\backslash )$ beginning balance of inventory consists of $480$ units, each costing $\backslash (\backslash$$ $100\backslash ).$ During January $2024,$ Big Blast Fireworks had the following inventory transactions:

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January $3$ Purchase $1,650$ units for $$183,150$ on account $($$$111$ each$).$

January $8$ Purchase $1,750$ units for $$203,000$ on account $($$$116$ each$).$

January $12$ Purchase $1,850$ units for $$223,850$ on account $($$$121$ each$).$

January $15$ Return $190$ of the units purchased on January $12$ because of defects.

January $19$ Sell $5,400$ units on account for $$810,000.$ The cost of the units sold is determined using a FIFO

perpetual inventory system.

January $22$ Receive $$793,000$ from customers on accounts receivable.

January $24$ Pay $$580,000$ to inventory suppliers on accounts payable.

January $27$ Write off accounts receivable as uncollectible, $$2,700.$

January $31$ Pay cash for salaries during January, $$137,000.$

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The following information is available on January $31,2024.$ a$.$ At the end of January, the company estimates that the remaining units of inventory purchased on January $12$ are expected to sell in February for only $\backslash (\backslash$$ $100\backslash )$ each. $[$Hint: Determine the number of units remaining from January $12$ after subtracting the units returned on January $15$ and the units assumed sold $($FIFO$)$ on January $19.]$

b$.$ The company records an adjusting entry for $\backslash (\backslash$$ $2,700\backslash )$ for estimated future uncollectible accounts.

c$.$ The company accrues interest on notes payable for January. Interest is expected to be paid each December $31.$

d$.$ The company accrues income taxes at the end of January of $\backslash (\backslash$$ $14,100\backslash ).$

rcise $6-21($Algo$)$ Part $55.$ Prepare a classified balance sheet as of January $31,2024.($Amounts to be deducted should be indicated with a minus sign.$)$

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